The Best Auto Refinance Loans for January 2026

Buying a car often means getting an auto loan, which can be expensive. On average, Americans paid $748 a month for a new car and $532 a month for a used car in the third quarter of 2025, according to Experian. 4

With higher insurance costs, having a car is becoming more expensive every year.

One way you may be able to save money is by refinancing your auto loan. Refinancing simply means replacing your current car loan with a new one, often at a lower interest rate or with longer repayment terms.

This could help lower your monthly payments—especially if you have improved your credit score or interest rates have gone down since you first got your loan.

If you’re interested in auto loan refinancing, here are some top lenders to consider:
 

Best Auto Refinance Lenders

1. PenFed Credit Union – Best for Low Rates

• APR: Starts at 4.19%
• Loan Amounts: Up to $150,000
• Terms: 36–84 months
• Pros: No fees for early payoff, cash incentives, co-borrowers allowed
• Cons: Membership required, late payment fees
• Standout: Anyone in the U.S. can become a PenFed member. Offers lower starting interest rates than most other lenders.

2. iLending – Best for Bad Credit

• APR: 5.49%–19.24%
• Loan Amounts: $5,000 to $150,000
• Terms: 12–96 months
• Minimum Credit Score: 560
• Pros: Flexible for lower credit scores, no fees for application, can skip payments
• Cons: Only does refinancing (not new car loans), unclear fee structure
• Standout: Good option for people with fair or poor credit, and lets you refinance older cars up to 10 years old with fewer than 150,000 miles.

3. myAutoloan – Best for Good Credit

• APR: As low as 4.09%
• Loan Amounts: From $8,000
• Terms: 24–72 months
• Minimum Credit Score: 600
• Pros: Can get multiple offers at once, fast online application, open to co-borrowers
• Cons: Not available everywhere, requires good credit
• Standout: Online marketplace for quick loan offers; can give decisions in minutes and funds quickly.

4. Gravity Lending – Best with No Fees

• APR: As low as 3.89%
• Loan Amounts: From $10,000
• Terms: 25–84 months
• Minimum Credit Score: 640
• Pros: No extra fees except state-required ones, can skip up to 90 days of payments, offers gap insurance
• Cons: Only offers refinancing (not new/used car loans), limited weekend service
• Standout: No origination or prepayment fees.

5. Capital One – Best for No Prepayment Penalty

• APR: 5.11%–6.08%
• Loan Amounts: From $4,000
• Terms: 24–84 months
• Pros: No penalty for paying off early, open to people with lower credit
• Cons: Only available through participating dealers
• Standout: Easy prequalification for existing Capital One customers.

6. Autopay – Best for Comparison Shopping

• APR: Starts at 4.67%
• Loan Amounts: $2,500 to $100,000
• Terms: 24–96 months
• Pros: See multiple offers easily, no early payoff penalties, open to bad credit, co-applicants allowed
• Cons: Loan approval and funding can take a few days
• Standout: Lets you compare offers from multiple lenders in minutes and offers cash-back refinancing.

 

How to Refinance Your Auto Loan

If you want to refinance your auto loan, follow these steps:

1. Review Your Current Loan

Find out your current payoff amount, remaining loan term, monthly payment, and interest rate.

2. Check Your Credit Score

Lenders usually have a minimum credit score (often 560 to 640). Make sure you know yours before applying.

3. Make Sure Refinancing Makes Sense

Refinancing can lower your monthly payments, but sometimes the overall cost of the loan may go up if the term is extended. Make sure your new interest rate is lower or your monthly budget needs a lower payment.

4. Check Car Requirements

Most lenders only refinance cars less than 10 years old and with fewer than 150,000 miles.

5. Get Your Documents Ready

• You will need:
  • Your old loan information
  • Proof of income (like pay stubs or tax forms)
  • Proof of residency (like a utility bill or driver’s license)

Refinancing your auto loan is one way to help reduce the costs of owning a car, especially as prices and rates change.

Compare your options, check your eligibility, and gather your paperwork before applying to improve your chances of getting a better deal.

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